With everyone competing towards supremacy in artificial intelligence, the latest country to intensify its efforts has been Britain. As reported by Reuters, British Prime Minister Keir Starmer said on Monday, January 13th, that he wanted to make the UK an artificial intelligence “superpower”. To reach this goal, the Prime Minister has promised to take a pro-innovation approach to regulation, make public data available to researchers, and create zones for data centers.
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Starmer plans to make artificial intelligence a key part of his strategy to boost the economy. According to the government, the technology could improve productivity by 1.5% a year, translating to an extra 47 billion pounds ($57 billion) annually over a decade.
“Britain will be one of the great AI superpowers. We’re going to make the breakthroughs, we’re going to create the wealth, and we’re going to make AI work for everyone in our country”.
-Starmer said at University College London, noting that the country was already the European leader for AI investment.
Another country that has been actively striving towards reaching supremacy when it comes to AI has been the US. In its latest efforts, the US government is moving to restrict artificial intelligence chip and technology exports further. Dozens of countries will be facing new restrictions on the export of advanced computer chips and other artificial intelligence (AI) technology. According to officials, the new rules are intended to make sure that “the world’s AI runs on American rails” and keep it out of the hands of “malicious actors” who could use it to threaten the United States.
Even though the US government may think it’s heading in the right direction, many top tech companies don’t necessarily agree.
“In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses, such as mass surveillance”.
-US Commerce Department
Chipmaker Nvidia is also against these restrictions and will be the most impacted by the plan. According to the chipmaker, if the restrictions are implemented, they would not “mitigate any threat” but only “weaken America’s global competitiveness” and undermine its innovation.
“By attempting to rig market outcomes and stifle competition—the lifeblood of innovation—the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage”.
-The company said.
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10. Stem, Inc. (NYSE:STEM)
Stem, Inc. (NYSE:STEM) is a global leader in artificial intelligence (AI)-enabled clean energy software and services. On January 14, the company announced that its solar monitoring and optimization solutions will support the commercial operation of a 484 megawatt (MW) solar portfolio for Neovolt, one of the largest asset owners in Hungary. The five-year agreement is the company’s largest software deal in EMEA, demonstrating its AI-driven value and utility-scale traction in Eastern Europe. It will allow Stem’s AI-powered PowerTrack Web, its software platform, to monitor, optimize, and control eight utility-scale sites in Hungary. This will in turn enhance plant performance through real-time updates, enhanced forecasting, and robust troubleshooting and security measures. The collaboration underscores how Stem’s AI solutions are transforming renewable energy management.
“Stem continues to strengthen its leading position in utility-scale clean energy asset monitoring and control across the growing Eastern European market. We are proud to have supported the successful commissioning of Neovolt’s renewable energy portfolio with our edge-to-cloud solutions. This five-year agreement reflects the culmination of Stem’s commitment and expertise in supporting seamless project execution and management of large-scale renewable asset portfolios”.
-Sebastian Grenz, Managing Director of EMEA at Stem.
9. Blaize Holdings, Inc. (NASDAQ:BZAI)
Blaize Holdings, Inc. (NASDAQ:BZAI) provides purpose-built, artificial intelligence (“AI”)-enabled edge computing solutions. On January 16, the company announced that it had entered into a strategic partnership with alwaysAI, a leader in computer vision solutions. The collaboration will leverage alwaysAI’s advanced computer vision technology with Blaize’s AI-enabled edge computing solutions. Together, these capabilities will lead to innovative physical AI solutions so that businesses can operate with real-time insights, increased productivity, and greater operational efficiency. The partnership is expected to enable businesses to deploy alwaysAI’s computer vision applications on Blaize’s edge computing platforms. In turn, it will ensure that enterprises can receive and act on this data securely at the edge.
“Blaize is committed to providing high-performance AI edge computing solutions, and partnering with alwaysAI allows us to enhance our offerings with robust computer vision capabilities. Together, we will enable our customers to unlock new insights and capabilities, improving their operational effectiveness and protecting their data”.
-Dinakar Munagala, Co-Founder and CEO of Blaize.
8. Pony AI Inc. (NASDAQ:PONY)
Pony AI Inc. (NASDAQ:PONY) specializes in autonomous mobility, offering AI-driven robotruck and robotaxi services, intelligent driving software, and vehicle integration solutions. On January 14, Deutsche Bank analyst Bin Wang initiated coverage of Pony AI (PONY) with a “Buy” rating and a $20 price target. The analyst told investors in a research note that Pony AI is in large-scale commercialization of autonomous mobility, particularly level 4 robotaxis. Level 4 robotaxis are fully self-driving vehicles operating in certain areas and conditions without a driver. The firm further stated that Pony AI Inc. is the only company that has managed to achieve all available regulatory permits in tier-one cities in China. This includes public-facing, fare-charging robotaxi services without safety drivers in Beijing, Guangzhou, and Shenzhen, as well as public-facing road-testing robotaxis in Shanghai. According to the firm, the company’s “Robotaxi” and “Robotruck” businesses, both of which leverage artificial intelligence extensively, will continue to generate a rising share of total revenue.
7. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 3
Rezolve AI Limited (NASDAQ:RZLV) is a software company that leverages artificial intelligence to automate software operations. On January 16, Maxim Group initiated coverage of Rezolve AI (NASDAQ:RZLV) with a “Buy” rating and a $10 price target. According to the analysts, Rezolve AI offers a “cutting edge technology platform” purpose-built for e-commerce. This cutting-edge platform, as well Rezolve AI’s unique market knowledge and technology, has not only delivered scalable and highly personalized customer experiences but has also empowered the company to enter into partnerships with key strategic players, particularly Microsoft (MSFT) and Google (GOOGL). The analysts further noted that even though the company has been pre-revenue in 2024, the management is targeting exiting 2025 with a $100M annual revenue run rate. The management at Rezolve AI itself is optimistic about the company’s endeavors.
“Rezolve Ai is at the forefront of reshaping global retail with AI-driven solutions. We are winning customers across Europe, Asia, and beyond, and the strength of our pipeline gives us great confidence in our growth trajectory for 2025. Our partnerships with Microsoft and Google are bringing unprecedented awareness and high-quality leads to Rezolve Ai, and we anticipate announcing many more customer wins in the US and globally this year”.
-Daniel M. Wagner, CEO of Rezolve Ai.
6. Tempus AI, Inc (NASDAQ:TEM)
Number of Hedge Fund Holders: 7
Tempus AI, Inc (NASDAQ:TEM) is a healthcare technology company that provides AI-enabled precision medicine solutions. On January 14, the company unveiled a suite of new, transformative capabilities available in Tempus One, the company’s generative AI assistant. Tempus One, the company’s generative AI-enabled clinical assistant, is designed to revolutionize patient care and precision medicine by offering data-driven decision support in the clinic as well as evolving research to bring new drugs to market. Using Tempus’ proprietary Large Language Model (LLM) Agent Infrastructure (Agent Builder), Tempus One processes unstructured healthcare data for improving clinical research and care. Tempus One’s latest iteration includes four breakthrough generative AI-powered capabilities that leverage LLMs to derive insights from the said unstructured data.
“When we launched Tempus One a few years ago, our hope was that it would grow and scale in intelligence for the benefit of clinicians, researchers, and patients. We’ve been blown away by the evolution of this product which is designed to continually evolve so that we can easily deploy new generative AI solutions to our customers to address their evolving needs. For example, LLMs now give us the opportunity to derive new insights from unstructured data, which has some of the richest patient data and until now, was extremely difficult to access at scale”.
-Eric Lekfofsky, Founder and CEO of Tempus.
5. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On January 17, BTIG raised the firm’s price target on AppLovin (NASDAQ:APP) to $437 from $432 and kept a “Buy” rating on the shares. The rating, issued ahead of the company’s Q4 results, reflects the consistent improvement in advertiser feedback around AppLovin’s recently launched commerce product. The analyst told investors in a research note that the comments suggest advertiser count, campaign volume, and overall spending are all growing at healthy sequential rates. The company has recently launched a program whereby it integrates e-commerce advertising in its mobile gaming platform leveraging its AI-powered AXON engine. The firm is also optimistic about projecting higher-than-expected results for Q4 and anticipates a bigger boost to advertising revenue in 2025.
4. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Marvell Technology, Inc. (NASDAQ:MRVL) is engaged in the development and production of semiconductors, focusing heavily on data centers. One of the biggest analyst calls for Monday, January 13th, was for Marvell Technology, Inc. Jefferies reiterated a Buy rating on the stock with a price target of $120.
“We continue to like NVDA on the precipice of the Blackwell ramp but see more upside in AVGO and MRVL as they ride the wave of rising demand for custom silicon”.
-Analyst Blayne Curtis.
The firm is bullish on Marvell considering the growing demand for custom AI chips. Marvell helps large tech companies design their own semiconductors. The firm also stated that Marvell is a stock with the potential for a more significant upside than Nvidia due to the rollout of Amazon’s Trainium2 chips. This is because the company is likely to play a crucial role in supporting the deployment of these chips.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology company known for its custom chip offerings and networking assets. On January 15, the company announced the launch of Brocade G710 24-port 64G switch, a new entry switch offering worry-free storage networking and security for small to medium-sized businesses. The Brocade G710 offers low-cost access to Gen 7 Fibre Channel technology. It is one of the lowest latency, energy-efficient Fibre Channel switches in the industry with a typical power draw of just 65 watts. The switch has also demonstrated the ability to address the most demanding application and storage requirements. Finally, it provides superior investment protection with the industry’s only lifetime warranty, offering access to technical experts 24×7 to troubleshoot and solve issues.
“Brocade Gen 7 Fibre Channel enables a cyber-resilient SAN that’s easy to deploy and manage while delivering the reliability, security and performance customers demand. Our new entry switch provides worry-free storage networking and no compromise security in an affordable solution that addresses the needs of on an always-on data center”.
-Dennis Makishima, vice president and general manager, Brocade Storage Networking division, Broadcom.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company that has strengthened its mark in the AI realm with the launch of Apple Intelligence, its personal intelligence system. However, one AI feature on the iPhone has been sparking mistrust and frustration amongst users. The feature, which summarizes user notifications through AI, has been spreading misinformation lately. It falsely claimed that British darts player Luke Littler had won the championship before it happened, also said that Tennis legend Rafael Nadal had come out as gay, and even reported that Luigi Mangione, the man arrested following the murder of UnitedHealthcare CEO Brian Thompson in New York, had shot himself. On January 6, Apple Inc. told CNBC that it was working on an update to resolve the problem. The company said it will be adding a clarification that shows when Apple Intelligence is responsible for the text displayed in the notifications. In more recent developments, BBC reported on January 17 that the company has suspended this new artificial intelligence (AI) feature for now, as it has been drawing criticism and complaints for making repeated mistakes in its news headlines’ summaries.
“We are working on improvements and will make them available in a future software update”.
-Apple spokesperson said.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On January 10, Reuters reported that a group of authors alleged that Meta Platforms used pirated versions of copyrighted books to train its artificial intelligence systems. They also alleged that this has been done with approval from its CEO, Mark Zuckerberg, as revealed by newly disclosed court papers. Some of the authors suing Meta for copyright infringement include Ta-Nehisi Coates and comedian Sarah Silverman. The accusations, in filings made public on Wednesday in California federal court, revealed that the authors have claimed that the internal documents produced by Meta during the discovery process showed the company knew the works were pirated. Asking for permission to file an updated complaint, the authors said that the new evidence showed Meta used the AI training dataset LibGen. LibGen allegedly contains millions of pirated works that are distributed through peer-to-peer torrents. Internal communication from Meta showed Zuckerberg “approved Meta’s use of the LibGen dataset notwithstanding concerns within Meta’s AI executive team (and others at Meta) that LibGen is ‘a dataset we know to be pirated”, the authors further claimed.
While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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